Economic Stimulus Package Passes and is Signed into Law
The biggest economic stimulus in American history has passed, but Washington’s colossal intervention to save the economy still chooses winners and losers among businesses and American workers.
Checks on the way
What they got: All U.S. residents with adjusted gross income up to $75,000 ($150,000 for married couples) would get a $1,200 ($2,400 for couples) “rebate” payment. They are also eligible for an additional $500 per child. The payments would start phasing out for earners above those income thresholds and would not go to single filers earning more than $99,000; head-of-household filers with one child, more than $146,500; and more than $198,000 for joint filers with no children.
$500 Billion in Grant to Specific Industries
Hospitals gets their wish: $100 billion
What they got: Health care providers would secure $100 billion in grants to help fight the coronavirus and make up for dollars they have lost by delaying elective surgeries and other procedures to focus on the outbreak. They would also get a 20 percent bump in Medicare payments for treating patients with the virus.
Telemedicine investment: $200 million
What they got: The Trump administration would get $200 million for boosting Skype-style health checkups by investing in services and devices that help health care providers connect remotely with patients.
Aid to airlines: $58 billion
What they got: Airlines would receive $29 billion in grants, and $29 billion in loans and loan guarantees, as well as a reprieve from paying three of their major excise taxes on the price of a ticket, the fuel tax and a cargo tax. That funding comes with strings, though — no stock buybacks, and limits on executive compensation, to start. Half the funds would go toward “the continuation of payment of employee wages, salaries, and benefits” while the other half would go to loans and loan guarantees for passenger airlines, repair stations and ticket agents — subject to conditions.
Businesses
Prize for retaining payroll
What they got: Businesses would get a tax credit for keeping idled workers on their payrolls during the coronavirus pandemic, so long as the businesses meet certain criteria. They would get a refund for half of what they spend on wages, up to $5,000 per worker.
Employers and self-employed individuals
What they got: They would get to defer the 6.2 percent tax they pay on wages that is used to fund Social Security.
State and local governments: $150 billion
What they got: The agreement would provide $150 billion for state and local governments, with $8 billion set aside for local governments, which are bleeding tax revenue as only essential businesses remain open and unemployment claims climb by the tens of thousands every day.
Pentagon plus-up: $10.5 billion
What they got: The Defense Department would field an infusion of $10.5 billion, including $1.5 billion for the National Guard to deploy up to 20,000 on-call soldiers to help state response teams fight the coronavirus over the next six months. The bill would also spend $415 million on research and development work at the Pentagon, aimed at developing vaccines and antiviral medicine.
Minimal aid for insurers
What they got: Insurers wanted an emergency fund to offset big losses stemming from the pandemic, as well as premium subsidies to help fund temporary “COBRA” coverage for laid-off workers. They got none of that, although the legislation aims to protect them from price-gouging on coronavirus tests.
Cruise industry relief
What they got: The deal does not appear to include any direct funding for the ailing cruise ship industry, which has been devastated by the pandemic.
Retail tax fix
What they got: Retailers, restaurateurs and hotels will be able to immediately deduct from their taxes what they spend on property improvements. They were supposed to get the write-off in the 2017 tax overhaul, but a glitch actually made them worse off.
Propping up the postal service
What they got: The final bill would provide the already-underwater U.S. Postal Service with a $10 billion Treasury loan to stave off total insolvency, but not a direct infusion of emergency cash. House Democrats had wanted a $25 billion appropriation to keep the federal carrier going amid the pandemic, in addition to language that would wipe out its $11 billion debt.
Food stamps and child nutrition: $25 billion
What they got: The stimulus includes nearly $25 billion for food assistance, including nearly $16 billion for SNAP and nearly $9 billion for child nutrition.
Relief for farmers, ranchers: $24 billion
What they got: Nearly $24 billion, including $14 billion for an obscure Depression-era financial institution that USDA has wide discretion to use to stabilize the farm economy. Another $9.5 billion would be set aside for emergency aid for the agriculture sector, including cattle ranchers and fresh fruit and vegetable growers
Emergency assistance for schools: $30 billion
What they got: The final package provides more than $30 billion in emergency education funding for colleges and universities, states and school districts.
Distilleries
What they got: Distilleries received a temporary exemption from an excise tax for alcohol they use to make hand sanitizer that’s produced and distributed within Food and Drug Administration guidelines.